Description


The Paris Agreement requires Parties to prepare, communicate, and update successive nationally determined contributions (NDCs) every five years, aiming for the highest possible ambition to meet its goals and those of the United Nations Framework Convention on Climate Change (UNFCCC) (UNFCCC, 2015). NDCs embody each country’s commitment to reducing emissions and adapting to climate impacts.

The first global stocktake under the Paris Agreement, concluded in December 2023 at the United Nations Climate Change Conference (COP28), noted significant progress towards the Paris Agreement goals, albeit largely insufficient. It called for a comprehensive transformation across all sectors, essential to lower emissions, strengthen resilience, and mobilize resources in a just and sustainable way to accelerate and amplify efforts to meet the agreed goals (UNFCCC, 2024).

As countries prepare their third round of NDCs (NDCs 3.0) before COP30 in 2025, countries are encouraged to realign global emissions with climate goals with ambitious, economy-wide emissions reduction targets across all sectors and greenhouse gases, considering each country’s unique circumstances and shared but differentiated responsibilities based on individual capabilities (UNFCCC, 2015).

Trade and Investment are key means to accelerate the implementation of climate goals, contributing to just transitions and offering sustainable development and trade opportunities. Trade can enhance access to the energy-efficient goods and technologies needed for climate change mitigation and adaptation. Sustainable trade practices can open new markets, create decent jobs, and drive innovation.

Investment supports the deployment of renewable energy. However, UN Trade and Development (UNCTAD) research shows that only over a quarter of developing countries’ NDCs include detailed investment planning and fully utilize trade-related measures. The stakes are particularly high for developing countries where environmental degradation and climate change exacerbate poverty and undermine development gains.

Against this background, UNCTAD will introduce draft guides for consultation for policymakers to mainstream trade and investment policies to advance national climate and sustainable development plans, including NDCs, and take advantage of new business and trade opportunities. The Guidelines are part of UNCTAD's contribution to the COP29 Presidency Initiative: Baku Initiative on Climate Finance, Investment and Trade Dialogue (BICFIT).